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Board of Selectmen Minutes -- 01/22/2015 Budget Hearing
Selectmen’s Budget Hearing
January 22, 2015
Present:        Bob Thompson, Chairman; John Allen and Bill Lockard, Selectmen

Visitors:       Town Office Administrator Julie Atwell, Town Office Administrative Assistant Julie Hoyt, Police Chief Doug Jette, Fire Chief/Road Agent Jay Henry, Town Clerk/Tax Collector, Treasurer Kathleen Dougherty, Bea Davis, Bob Davis, Jerry Dougherty, Dean Davis, Nancy Davis, George Howard, Linda Hall-Little, Penny Miller, Sarah Clemons, Bob Burton, Peter Benson, Edith Houlihan, Joyce Allen

Chairman Bob Thompson called the meeting to order at 6:01 p.m. noting this is the first of two Budget Hearings; the second will be February 5th at 6 p.m.  Supporting documents are available on the front table tonight and will be available in the Office.  Department Heads were asked to provide the Board with justification if there’s a requested increase otherwise to keep their budgets flat.  There was a proposed three percent salary increase for all town staff and that is built into the budget.  

The budgets were reviewed by each Department Head; items with discussion are listed.

  • Police Department  Police Chief Douglas Jette reviewed his proposed budget; it represents a seventeen percent decrease.  Wages are reduced but the biggest question is for Gas/Oil; over the past six months the Department has had two Officers getting ready to leave; there was no incentive for them to get out there; going forward there are two new people and there will be expenditures to train them.  This presents the possibility they will be out and more visible thus using more gas and leading to maintaining the vehicles more.  Chief Jette is keeping the same budget as last year; 2015 will be good gauge for the Department.  The price of gas is going down too, so it should balance out.  There’s been a huge savings in Health Insurance as well.  Supplies/Operating Expenses will stay the same; it takes twenty-three hundred to twenty-seven hundred dollars to outfit a new Officer just in equipment and uniforms.  While the town doesn’t have to pay for training and certifications the town does have to prepare them for their certifications.  Selectman Allen asked about the thirty-three hundred dollar overrun on Special Equipment; this was a one-time expense for the upgrade to the communication equipment in the cruiser to bring it into compliance; it was a required purchase.   Jerry asked if the Special Detail line is just to cover the income that comes in and Chief Jette noted the Special Detail fund gives the Officers the opportunity to get paid expeditiously.  Officers go to the detail, turn in their voucher to the Office for “x” dollars which is then turned back to the coordinator of the job to approve.  It takes about thirty days before they get paid.  This way Officers can submit the bill and the town pays them from that fund then when the job pays for the Officers’ time the town is reimbursed.  Special Details are not making money for the town but it’s not costing the town either.  Those funds end up in the Unreserved Capital Fund.  Bea asked what the salary of the new Officer will be; his starting rate is nineteen dollars and twenty-three cents per hour.  Penny Miller would like to see the wages match those listed on the W-2.  New Hampshire Retirement and Health Insurance are both pretax.
  • Fire Department  Fire Chief Henry noted there is a zero percent increase this year; there were no major issues; Wages are up a bit due to having a couple of guys taking the Firefighter I trainings.  Jerry asked if the Department is asking for anything on the Warrants; there is a request for one-hundred thousand dollars for the Fire Department Truck Capital Reserve Fund.
  • Highway Department  Road Agent Henry noted there is an increase for Salt due to the wet snow.  Salt is also increasing in cost; it’s in the budget at thirty-three thousand dollars but he’d like to increase the line by two thousand.  Selectman Allen thinks this is reasonable; the line will be increased to thirty-five thousand dollars.  Gasoline & Diesel Fuel will be increased to thirty-two thousand dollars.  Heavy Equipment was over due to bad luck; the springs were replaced on every truck this year; it was a bad frost heave season; it costs eight-thousand dollars for one truck.  Selectman Allen asked if there was anything else due.  Road Agent Henry is comfortable leaving this at twenty-thousand dollars.  He noted that each year the trucks get harder to work on so there’s less that can be done in-house; good year or bad year Road Agent Henry would like to leave this at twenty-thousand then if it’s over again next year he’ll ask for an increase.  He’s asking for an increase in Utilities to ten-thousand, five-hundred dollars based on a proposed twelve percent increase projected by NHEC.  The Sand budget is always higher than what he uses; it was twenty-four thousand before Road Agent Henry came on; he’ll leave it the same in case there’s a bad year, which might be this year.  Nancy Davis asked if the line for Street Lighting is just the electricity for those; Road Agent Henry affirmed this.
  • Town Clerk/Tax Collector  Town Clerk/Tax Collector Karen Burton noted most of the increase is due to the full time benefits for the Town Clerk/Tax Collector’s position.  It was a Warrant Article last year; it’s in the budget this year as it was voted in.  She is requesting an increase of one-thousand dollars to the Deputy Town Clerk/Tax Collector’s salary.  Town Clerk Burton is also requesting her salary be adjusted to thirty-five thousand dollars which represents an increase of one penny per thousand on the tax rate.  She provided the Board with a wage and benefits survey for Town Clerk/Tax Collectors in the state.  The lowest hourly rate is eighteen dollars and thirty-one cents; the highest is twenty-eight dollars.  With the requested increase, Town Clerk Burton’s rate will be eighteen dollars and nineteen cents which is still below the lowest in the state.  Town Clerk Burton noted she is not asking for more, she is just asking to be brought up to the standard.  This represents an increase of approximately thirteen percent.  Jerry asked if the increase would be a Warrant Article; according to the LGC; the Board has no authority to raise the Town Clerk’s salary; it has to be a Warrant Article.  Penny would like to comment about the wage and benefits report Town Clerk Burton is using for comparison; this report doesn’t take into consideration the experience of the Town Clerk or the size of the town; the towns on this list are much bigger than the town of Jackson.
Regarding the Deputy Town Clerk’s raise by a thousand dollars; in the next year Town Clerk Burton may have to hire a Deputy and training at the State level is extensive.  Chairman Thompson asked if Town Clerk Burton is saying the extra thousand would be needed to cover the Deputy while someone is training.  Town Clerk Burton noted all training is free, what would be incurred is travel expenses; in addition the new Deputy must sit in the office for thirty days before s/he would be allowed to participate in training at the state level.  When asked how many hours a week the Deputy would be working; Town Clerk Burton noted the Deputy would be on an as needed basis for elections and special events; Town Clerk Burton is working the rest of the hours.  She would also like to clarify for Penny that she knows the towns in the wage report are bigger.  She’d like to point out that ten years ago the rate for the Town Clerk/Tax Collector was thirty-five thousand dollars and the Town Clerk’s office was open sixteen hours a week.  Town Clerk Burton works thirty hours a week and the office is open to the public twenty-eight hours a week.  The costs for this have been kept down but there’s more work and the office is busier.  The Selectmen feel it’s not necessary to put this into the budget this year.

As Edith Houlihan wasn’t yet in attendance, the Board held the Library budget until she arrives and moved on to the next agenda item.  

  • Selectmen  There are no changes to the Selectmen’s budget.  
  • Library  Edith Houlihan noted the Library is asking for a five-point-five-two percent increase; there is an increased cost for maintaining and inspecting the sprinkler system and the elevator; also the Coop’s increase.  The Library staff hasn’t had an increase in three years; this year she has added a four percent Cost of Living increase to Wages and a two hour increase for the Director.  The pay raise would be for Lisa and Meredith as the Director’s rate is frozen through 2015.  When asked why Edith thought a four percent increase was appropriate, she noted she heard other Departments ask for five percent last year; the Library is a vital part of this town; Library staff are happy but the public is also happy with the Library’s staff.  Penny wants to know why the Library has only asked for a nine percent increase on its Utilities while everyone else has asked for twelve percent; she wondered why that amount wasn’t consistent across the Board.  Edith noted last year they came within two hundred dollars on Utilities so they are very good at their calculations; in addition, Roger Aubrey is a Library Trustee and his wife, Joan, is Secretary of the Board at NHEC and nine percent is what they heard would be the increase.  Edith also explained the way the Library’s budget works; the town doesn’t pay the Library’s utility bill, the town gives the Library an allowance and if the budget goes over then the Library has to cut other programs.  Utilities includes Fire Inspections and Elevator Inspections.  Penny asked the Selectmen to revisit whether the twelve percent increase being requested by other Departments is appropriate.  Fire Chief/Road Agent Henry noted the Highway Department building has three thirty foot overhead doors; the Fire Department is in a fifty year old building; their utilities can’t be compared to those of the Library’s new building.   Nancy suggested changing out the CFL bulbs for LED lighting for an additional cost-savings.  Jerry asked if the Trust Fund contributes to the Library; Edith noted the Trust contributes two-hundred-two dollars monthly; twelve thousand is raised from book sales, copies and the fax service.  Donations from the Friends of the Library will be over seven thousand dollars this year.  Money is appropriated for Wages and Utilities but nothing for books or technology; those items cost fifteen thousand dollars this year. Peter Benson would like to make a comment.  While it’s a small dollar amount, allowing different Departments to have different wage increase percentages will haunt the town.  All the other Departments are asking for three percent while the Library is asking for four percent.  He’d like the Board to think about keeping everybody at the same percentage for three reasons:  1) it is most fair to the town’s employees, 2) it is treating all of the employees the same; it’s fair governance and 3) the Library staff are relatively new employees, too.  Edith pointed out that Library staff are not town employees; they are not eligible for town benefits.  She does appreciate Peter’s comments; she wishes the Library had done as the other Departments did but the Library is “off to the side”.   Selectman Lockard thinks the explanation for requesting four percent is fine.  Edith reminded folks that the four percent also represents two more hours a week for the Library Director.  In the past the Library Director was doing computer work on a contract; it has now been rolled into her job as director.  Three to four years ago the Library was not even in the operating budget; it was all on a warrant article.  Edith pointed out that Lisa’s salary at four percent versus three percent represents an extra fifty dollars per year; in Meredith’s case it’s a bit more as she works more hours.  Chairman Thompson would like to keep everybody at three percent but there’s a relatively small difference between three and four percent.  Edith wondered if the three percent was a published number; should she have known not to ask for four percent.  This was not a set figure however, the Library’s liaison will, in the future, let the Library Treasurer know what the Board is hearing from other Departments; point made and taken.  Edith noted the citizens of Jackson and the Friends of Jackson Library have been generous; that is what allows the Library staff to do what they are doing.   
  • Financial Administration/Remaining Operating Budget Items  Accounting Expenses includes an increase of twenty thousand dollars for the CPA audit.  Chairman Thompson reviewed the recent history of elected versus not elected auditor; should having an elected auditor be put on the warrant and approved by the town, that position will go into effect in 2016; the town has to provide an auditor for 2015.  As discussed earlier today at the Selectmen’s meeting (see agenda item 7c), the town has received a waiver for the more extensive audit.  This cost is now at three thousand dollars, not twenty thousand.  Wages, FICA & Medical has the three percent COLA; Utilities is up eight-hundred dollars for the NHEC increase; the rest of the lines are flat.  Jerry asked where the Treasurer’s salary is shown; it is under Selectmen/Elected Officers’ Salaries.
The Bartlett/Jackson Ambulance was sixty-four hundred dollars last year; they are proposing ninety-six-hundred-thirty dollars for this year.  The Board received an email from Sue Gaudette explaining the increase is due to the mandated upgrade to pagers and radios; there are some maintenance contracts due and lower than expected income is also factored in.  Bob Burton asked how the calls go out; do dispatchers automatically tone out the Bartlett/Jackson Ambulance or do they prefer contacting the commercial ambulances?   Chairman Thompson will take that question to Sue and Rick.  Bea noted these calls are toned out to the Sheriff’s Department; she’s wondering why the Ambulance isn’t making any money.  It was clarified that the lack of revenue is due to difficulty in collecting; it is hoped this might be better with the recent change to health insurance.    

Other Operating Budget Items  Building Inspection/Inspector Expenses is adjusted for new Inspector hours.  Fire Chief/Road Agent Henry thought this was money that comes back to the town.  It was explained that at this time the fees collected aren’t paying for the new Inspector.  The last Fire Chief/Road Agent Henry knew there should have been plenty to pay for the Building Inspector; he’d like it clarified that the Building Inspector doesn’t end up costing the town.  Jerry noted the amount still has to be appropriated and the amount paid for these fees ends up in the Unreserved Capital Fund.  It was noted the line is cancelled out by the fees collected but they don’t go back to the Building Inspector Expenses line.  Nancy asked if the Building Inspector is a subcontracted position or if Inspector Bennett is an employee.  It was noted Inspector Bennett is a town employee, paid an hourly wage.  Penny wants to know why FICA/Medical aren’t broken out from the wages like it is for the other town employees.  While it was explained previous budgets had only “expenses” as the position was subcontracted, Penny suggests putting this into the same format as other employee’s information is broken out.  Joyce Allen asked what happens to the inspection fees now that this is a town employee position.  Chairman Thompson explained that fees will be collected in the same way as they have been; the Building Inspector does his job and the fees go to offset his wages.  The wages were boosted this year due to having both inspectors working while Inspector Bennett was training.  Fire Inspector Goudreau is back to one day a week so the line should be just Inspector Bennett’s wages; he is part time and not eligible for benefits.  

Cemeteries  Trustee Barbara Theriault has requested an increase of three-hundred dollars for replacing the sign at Dundee and other maintenance items.

Emergency Management is flat; expenditures weren’t nearly what was budgeted last year.  

George Howard would like to know what the sixty-seven-hundred dollars under Recreation & Parks/Bartlett Recreation Department is for.  This covers the Memorandum of Understanding with Bartlett to allow Jackson’s youth to participate in their programs.  

With the adjustments to the budget as just discussed; the proposed Operating Budget will be more than twenty-eight thousand dollars less than last year’s.     

Bea asked about the requested increase for Jackson Conservation Commission; Larry had planned to speak about this tonight.  Bea wants to know why the mowing of Prospect Farm, an expense of seventeen-hundred dollars, is coming out of the Conservation Commission’s budget; that leaves them with three-hundred dollars for the rest of their expenses.  Chairman Thompson will talk to Larry before the next Budget Hearing; Chairman Thompson is not aware of any formal request for an increase.  Bea also pointed out there will be no money this year for the Land-Use Exchange Tax.  

Going back to Building Inspection, Penny would like to know what Septic System Design Review is.  This is the fee to have Town Engineer Burr Phillips review the plans.  Penny wondered why, when the people who design the system for the owner have to be certified, Jackson is asking for another certified person to review the plans.  Septic Systems require a stamp from the town, which Engineer Phillips provides; this is a Jackson rule.  In order to change that process, a Zoning Ordinance amendment would have to go to the town for approval.  Jerry noted the town should get out of the business of septic approvals.  Fire Chief/Road Agent Henry noted the state law requires a stamped plan from the owner and then the town decided to have its own certified person to review it.  It was noted the Planning Board would have to bring that Zoning Ordinance change forward.  Penny wondered if the amount could be zeroed out; the town has to appropriate the money even if it is a wash.  Penny pointed out the fees are not a wash to the owner.  The town talks about getting young families here but the cost of building a home keeps going up; Engineer Phillips does the work but the fees are paid by the person building the home; it is not a wash.  The taxpayer has to pay it and the money the town gets back goes into the Unreserved Capital Fund.  Chairman Thompson noted this expense is related to an Ordinance that is on the books; this Board is not going to say it’s not going to appropriate the money.  

  • Warrant Articles  Warrant Articles are down by two-hundred-fifty-five-thousand, four-hundred-twenty-seven dollars; the information is on page five for folks to review.
Article XX Town Office Roof  Chairman Thompson noted the roof is in need of replacement and there are concerns about waiting another year for that.  The Board elected to put this on as a separate warrant article rather than putting the thirteen-thousand dollars in the Operating Budget.  While the roof isn’t leaking some of the shingles are curling; Fire Chief/Road Agent Henry noted it might wait another year but it has to be done soon; this is a preliminary figure for a steel roof; he’s not sure why this isn’t part of the Operating Budget.  The Board wants to be able to have a specific discussion about this at Town Meeting; the Board chose to break it out so the voters can weigh in.  Jerry pointed out this is the correct way to handle non-recurring expenses.  

Article XX Police Department Air Conditioner is the cost for air conditioning the Police Department.

Article XX VFW will be removed as Bill Wogisch will be covering this expense.  

Town Clerk Burton asked if she needs to generate a warrant article for her requested increase; this was affirmed; February third is the deadline.  She’ll follow-up with DRA.

Article 21 Road Reconstruction Capital Reserve Fund has been halved to fifty-thousand dollars; Road Agent Henry is comfortable with that decrease.

George asked if individual wages will be printed in the Town Report; these used to be in the Report but the information was removed some time during 2005/2006.  Bea had asked for this to be put back into the Town Report; wages are reported on page nine of the Budget packet.  Penny wants to see the gross salary not the W-2 amount; Chairman Thompson noted prior Reports listed the W-2 amounts; the plan is to mirror what was there before.  

Jerry asked what the balance is for the Fire Truck; this is reported on page seven; the balance is three-hundred-fifty-nine thousand, two-hundred-twenty-one dollars.  

  • Town Value and Tax Rate Analysis  This information is on page six; the projected rate of four dollars and eighty-three cents represents not using any of the Unreserved Fund balance.  Keeping the Unreserved Fund balance at or above the recommended twelve percent would result in a tax rate of four dollars and fifteen cents.
  • Capital Improvements  Chairman Thompson directed folks to the new spreadsheet on page seven that breaks out projects for planning purposes; it identifies what the needs for Fire, Highway and Police are going to be so the costs can be phased in.  
  • Projected Revenues  Penny asked if Payment in lieu of Taxes (page 8) is all from the Forest Service; this was affirmed.  Bea noted the town isn’t guaranteed any of this; they pay what they want.  
Town Clerk Burton noted the valuation for the town was three-hundred-ninety million dollars; it is now three-hundred-eighty-six million; that’s four million dollars’ worth of potential taxes lost; it’s a lot of money to lose at one shot.  She wants to know why the value of the town went down.  While the Board will follow up on this; Town Office Administrator Atwell noted the value of the town has been overstated at one-hundred-seventeen percent; the reval brought the ratio back to one-hundred percent; it’s a function of the process that is done every five years.    

Nancy would like to have a list of what has come off the tax rolls in the last five years; information for this is on page six; this shows the trend from 2011 to 2014.  Nancy noted that information partially answers her question; she doesn’t know anybody whose valuation went down so there may be other factors involved.   Office Administrator Atwell noted this has been answered; the town was previously overvalued by up to seventeen percent; now the town is back at one-hundred percent valuation.  Peter Benson noted when properties like the Nestlenook come off the tax rolls there is a lot of impact.  

Penny would like to suggest changing over light bulbs to LED as the savings could be enormous.

Jerry would like to thank the Board for providing one of the most complete budget reports he’s seen in years; the Board noted the praise goes to Office Administrator Atwell and Office Administrative Assistant Hoyt.    

There being no further business, the meeting was adjourned at 7:53 p.m.
                                                
                                        Respectfully submitted by:

                                        Martha D. Tobin

                                        Recording Secretary